Colgate-Palmolive (CL)
NYSE:CL
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Colgate-Palmolive
(NYSE:CL)
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Rating:61Neutral
Price Target:
$93.00
â–²(10.02% Upside)
Action:ReiteratedDate:03/13/26
The score is driven mainly by strong cash-flow generation and a durable revenue base, partially offset by elevated balance-sheet risk (high leverage vs. very thin equity). Technical indicators are weak and weigh on the rating, while valuation is mixed (reasonable yield but negative P/E). The earnings call supports steady execution (Hill’s/emerging markets strength) but highlights meaningful near-term uncertainty and a wide guidance range.
Positive Factors
Cash generation
Robust OCF ($4.2B) and FCF ($3.6B) in 2025 create a durable internal funding engine for dividends, buybacks, capex and disciplined M&A. Strong cash conversion cushions volatile earnings, funds reinvestment in brands and supports debt service, improving strategic optionality over months.
Negative Factors
High leverage / thin equity
An ~$8B debt load against extremely thin equity ($54M) produces an aggressive capital structure with limited cushion. This raises refinancing, covenant and solvency risk under stress, constrains flexibility for large strategic moves and elevates the cost of adverse shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Robust OCF ($4.2B) and FCF ($3.6B) in 2025 create a durable internal funding engine for dividends, buybacks, capex and disciplined M&A. Strong cash conversion cushions volatile earnings, funds reinvestment in brands and supports debt service, improving strategic optionality over months.
Read all positive factors
Colgate-Palmolive (CL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.75B
Dividend Yield2.67%
Average Volume (3M)6.61M
Price to Earnings (P/E)―
Beta (1Y)0.13
Revenue Growth-0.05%
EPS Growth2.49%
CountryUS
Employees34,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.95
Shares Outstanding801,548,030
10 Day Avg. Volume7,046,857
30 Day Avg. Volume6,605,053
Financial Highlights & Ratios
PEG Ratio-1.19
Price to Book (P/B)1.18K
Price to Sales (P/S)3.14
P/FCF Ratio17.58
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue3.65
Enterprise Value/Gross Profit6.08
Enterprise Value/Ebitda19.74
Forecast
1Y Price Target
$97.19Price Target Upside14.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)3.86
Revenue Forecast (FY)$21.29B
Colgate-Palmolive Business Overview & Revenue Model
Company Description
Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment off...
How the Company Makes Money
Colgate-Palmolive primarily makes money by selling consumer packaged goods (CPG) and pet nutrition products to trade customers around the world. Its revenue model is largely volume- and price-driven: it manufactures or sources finished goods, sell...
Colgate-Palmolive Key Performance Indicators (KPIs)
Any
Oral, Personal, and Home Care Revenue Breakdown
Details revenue from core product categories, indicating consumer demand trends and the company's market position in each segment.
Details revenue from core product categories, indicating consumer demand trends and the company's market position in each segment.
Data provided by:
The Fly
The FlyColgate-Palmolive Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 01, 2026
Earnings Call Sentiment Positive
The call presented a constructive but cautious outlook: management highlighted clear operational and financial wins (record operating cash flow, stronger Q4 momentum, strong Hill's and emerging market performance, successful M&A integration) and ambitious capability investments (omnichannel, RGM, AI, supply chain). At the same time, the company faces meaningful near-term headwinds — low category growth, U.S. volume weakness, cost inflation, tariff exposure, FX volatility and promotional risk — which temper near-term upside and produced a wide 2026 guidance range. Overall, the tone is optimistic about long-term strategy execution but prudent about short-term uncertainty.Positive Updates
Investment in Capabilities and Advertising Efficiency
Company is accelerating investments in omnichannel, RGM, digital, data/AI and supply chain; A&P dollars were up ~5% year-over-year on a dollar basis while A&P as a percent of sales was slightly down, reflecting focus on optimization and efficiency.
Negative Updates
Low and Volatile Category Growth
Category growth has stabilized at levels below historical norms (management cited ~1.5%–2.5%), prompting a conservative and wide 2026 organic sales guidance range of 1%–4% due to continued uncertainty.
Read all updates
Q4-2025 Updates
Positive
Negative
Investment in Capabilities and Advertising Efficiency
Company is accelerating investments in omnichannel, RGM, digital, data/AI and supply chain; A&P dollars were up ~5% year-over-year on a dollar basis while A&P as a percent of sales was slightly down, reflecting focus on optimization and efficiency.
Read all positive updates
Company Guidance
Colgate guided 2026 net and organic sales growth to a wide 1%–4% range (with the company saying worse category growth would land it near the low end, current category rates would put it near the middle, and stronger categories would push it toward the high end), citing stabilized category growth around roughly 1.5%–2.5%; the guidance reflects Q4 momentum (underlying organic sales >3% excluding private label), stronger emerging markets (Q4 organic ~4.5%), and brand strengths such as Hill’s (Hill’s ex‑private label growth in excess of 5% in Q4). They expect foreign exchange to be a low‑single‑digit benefit to revenue in 2026, focused mainly in H1 (FX was slightly favorable in Q4 but has been favorable only 2 of the last 10 years), and said FX should be used flexibly—part reinvested in A&P and capabilities and part contributing to the bottom line—while SGPP, RGM and productivity actions provide additional upside to margins and EPS.Colgate-Palmolive Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
38
Negative
Cash Flow
85
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.38B | 20.10B | 19.46B | 17.97B | 17.42B |
| Gross Profit | 12.25B | 12.11B | 11.25B | 10.15B | 10.29B |
| EBITDA | 3.96B | 4.85B | 4.25B | 3.37B | 3.76B |
| Net Income | 2.13B | 2.89B | 2.30B | 1.78B | 2.17B |
Balance Sheet | |||||
| Total Assets | 16.33B | 16.05B | 16.39B | 15.73B | 15.04B |
| Cash, Cash Equivalents and Short-Term Investments | 1.29B | 1.10B | 966.00M | 775.00M | 832.00M |
| Total Debt | 7.99B | 8.51B | 9.06B | 9.27B | 7.83B |
| Total Liabilities | 15.96B | 15.50B | 15.44B | 14.93B | 14.07B |
| Stockholders Equity | 54.00M | 212.00M | 609.00M | 401.00M | 609.00M |
Cash Flow | |||||
| Free Cash Flow | 3.63B | 3.55B | 3.04B | 1.86B | 2.76B |
| Operating Cash Flow | 4.20B | 4.11B | 3.75B | 2.56B | 3.33B |
| Investing Cash Flow | -817.00M | -534.00M | -742.00M | -1.60B | -592.00M |
| Financing Cash Flow | -3.26B | -3.39B | -2.79B | -952.00M | -2.77B |
Colgate-Palmolive Technical Analysis
Negative
84.53
Price Trends
90.95
Negative
85.02
Positive
83.74
Positive
Market Momentum
-1.92
Positive
38.09
Neutral
50.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CL, the sentiment is Negative. The current price of 84.53 is below the 20-day moving average (MA) of 87.45, below the 50-day MA of 90.95, and above the 200-day MA of 83.74, indicating a neutral trend. The MACD of -1.92 indicates Positive momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 50.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CL.
Colgate-Palmolive Risk Analysis
Colgate-Palmolive disclosed 19 risk factors in its most recent earnings report. Colgate-Palmolive reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Colgate-Palmolive Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $331.80B | 20.05 | 31.23% | 2.92% | 1.23% | 17.97% | |
73 Outperform | $22.04B | 27.62 | 17.16% | 1.38% | 1.45% | 42.04% | |
69 Neutral | $120.52B | 12.84 | 26.01% | 3.74% | -0.30% | -14.60% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $67.75B | -429.64 | 431.59% | 2.67% | -0.05% | 2.49% | |
61 Neutral | $32.19B | 16.63 | 155.28% | 5.03% | -10.04% | -23.41% | |
56 Neutral | $12.68B | 19.52 | 1502.49% | 5.05% | -9.35% | 123.06% |
* Consumer Defensive Sector Average
CL
Colgate-Palmolive
84.53
-2.52
-2.89%
CHD
Church & Dwight
93.13
-8.10
-8.00%
CLX
Clorox
104.89
-28.54
-21.39%
KMB
Kimberly Clark
96.99
-31.82
-24.70%
PG
Procter & Gamble
142.77
-13.18
-8.45%
UL
Unilever
56.03
-3.99
-6.64%
Colgate-Palmolive Corporate Events
Executive/Board Changes
Colgate-Palmolive Refreshes Board With New Bristol Myers Leader
Positive
Mar 12, 2026
On March 12, 2026, Colgate-Palmolive’s board elected Christopher S. Boerner, Board Chair and Chief Executive Officer of Bristol Myers Squibb, to join its board effective March 15, 2026, adding deep global pharmaceutical and healthcare experi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.